How can I get out of a car loan?

I have a car loan that I can no longer pay for—my income has taken a big hit in the past year—and I'm feeling really stuck. How do I get out of a car loan?

Eric Schad · Answered on Dec 14, 2022

Reviewed by Shannon Martin, Licensed Insurance Agent.

Sorry to hear that you may not be able to pay for your car loan. Fortunately, you have a few options to rectify the situation:

Sell the car and use the proceeds to pay off the loan
Refinance your auto loan to lower your monthly payments
Voluntarily surrender the vehicle
Call your lender and negotiate

Refinancing and negotiating are the two best ways to resolve the situation, as neither will affect your credit score and you’ll be able to keep your car. You may also be surprised how willing lenders are to work with someone in your situation!

If you’re looking to get the best deal on refinancing your car, check out the Jerry app! If you qualify, we’ll get you several refinance options so that you can pick the best possible deal for you. And our friendly agents are here to help every step of the way!

Best of luck with your finances, and hope that things get easier!

MORE: How to choose the best car insurance deductible

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